Petrochemicals Account for 40% of Non-Oil Exports

Petrochemicals Account  for 40% of Non-Oil Exports
Petrochemicals Account  for 40% of Non-Oil Exports

Petrochemicals account for more than 40 percent of Iran’s non-oil exports, said the managing director of National Petrochemical Co.

By consuming around 5 percent of the domestic hydrocarbon production annually, Iran’s petrochemical industry produces well over 40 million tons of products, Abbas Shari Moghaddam said during the opening ceremony of the IranPlast 2014 exhibition, IRNA reported.

“The operations of more than 30,000 manufacturers rely on petrochemical products whose raw materials are supplied by Asaluyeh and Mahshahr refineries in the south of Iran,” he said. “This further underlines the importance of sustainable development and investment in the downstream sector,” he continued.

Production capacity of Iran's petrochemical industry is around 60 million tons with the production of alkenes and especially propylene in priority.

Increasing the production of propylene will lead to the establishment of more downstream manufacturers and in turn creates jobs, given the high demand for propylene in the petrochemical industry, said Shari Moghaddam.

A bill is due to be presented to parliament that will reward investors seeking to establish downstream production units in less-developed regions.

Industries including automotive, aerospace, healthcare, food, pharmaceutical, packaging, home appliances, rubber and plastics rely on the petrochemical industry.

Natural gas, as the major feedstock for making petrochemical products, is priced at 13 cents a liter which compares well with the prices of other manufacturers in the Middle East, but "it would be wrong to compare the price of a liter of natural gas with that of gasoline (70 cents)" he said.